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Financial Professionals Financial professional news SECURE 2.0 Act – Annual Paper Statement Requirement Update
July 16, 2026

SECURE 2.0 Act – Annual Paper Statement Requirement Update

SECURE 2.0: Annual Paper Statement Requirement Update

As part of the SECURE 2.0 Act, requirements take effect beginning Jan. 1, 2026, impacting how retirement plan statements are delivered to participants.
 

What you need to know 

  • Paper statement requirement - Defined contribution plans must deliver at least one paper benefit statement per year (one every three years for defined benefit plans) unless electronic delivery requirements are met.
  • Electronic delivery requirement – Statements may be delivered electronically if a participant consented or if a work email address is on file and the participant is expected to read work email as an integral part of their job (wired at work).
  •  Participant notice requirement – Participants added after December 31, 2025, must receive the one-time paper notice about their ability to request paper statements before the plan uses electronic delivery of these materials, even if they are wired at work or provided affirmative consent. 
  • Statement content requirement - Participant statements must also contain specific required disclosures to comply with SECURE 2.0. 
     

What this means for plan sponsors and participants 

Plan sponsors may use different methods today to meet electronic delivery requirements, and participants will continue to have options for receiving statements. However, under the new requirements, some participants will receive a paper statement each year, even if they previously relied on electronic delivery.

The good news: we’re here to help. We’re updating our processes so that, regardless of the delivery method used, all requirements will be met for 2026 (including both calendar and off-calendar plan years). 

Please note: ESOP clients receive paper statements and comply with this provision because we don’t support electronic delivery at this time. 
 

What’s next

We expect the year-end statement will be delivered as a paper statement to comply with this new requirement, unless the e-delivery requirements have been met. For example: for a 01/01 anniversary plan, participants would receive the year-end statement in the first quarter 2027 if needed.

We’ll share additional details and guidance in the fall.

Important information 
For financial professional/institutional use only.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment, or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters pertaining to legal, tax, investment, or accounting obligations and requirements.

Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392.

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